Betterment Company Profile and Competitor Comparison

Betterment is a leading online investment advisor that has been around since 2009. The company was founded by Jon Stein and Eli Broverman with the goal of making investing easier and more accessible to everyone.

Betterment's services include automated investment management, tax-loss harvesting, and retirement planning. They have over 1 million customers and manage over $30 billion in assets.

Betterment's fees are competitive, with a fee of 0.25% for their digital plans and 0.40% for their premium plans. This is lower than many traditional financial advisors.

Betterment has secured funding through various rounds, with a total funding of over $800 million. This substantial investment has enabled the company to expand its services and improve its financial offerings.

The company has received funding from prominent investors such as Bessemer Venture Partners, Founders Fund, and RRE Ventures. These investors have played a crucial role in shaping Betterment's financial strategy.

Betterment's acquisition of Hedgeable in 2018 marked a significant milestone in its growth. This acquisition expanded Betterment's capabilities in the investment management space.

Betterment's financial strategy is focused on providing users with comprehensive financial insights and tools. The company aims to make investing and financial planning more accessible and user-friendly.

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Betterment offers a range of account types to suit different needs, including individual taxable, joint taxable, traditional IRA, Roth IRA, SEP IRA, rollover IRA, trust, 529 plan, and student loan management accounts.

Betterment's account setup process is user-friendly, allowing you to open an account online with a $0 minimum balance requirement, making it accessible to new investors with limited funds.

Betterment provides advanced goal planning tools that allow you to link external accounts and get a full view of your financial situation, which is considered in goal projections. This feature gives Betterment a clear edge over Schwab Intelligent Portfolios in this area.

Here are some of the key features of Betterment's account services:

Betterment also offers a range of portfolio management features, including automatic rebalancing and reporting features, making it a comprehensive investment platform.

Customization is a key feature to consider when choosing a robo-advisor. Betterment takes the lead in this category due to its more flexible portfolio options.

Betterment allows you to fine-tune all the allocations within a portfolio across the asset classes in addition to adjusting your risk tolerance levels. This level of customization is not available with Schwab Intelligent Portfolios, where you can only change your portfolio by redoing your risk questionnaire.

Betterment's Flexible Portfolios option gives you more control over your investments, making it a great choice for those who want to tailor their portfolios to their specific needs.

Here's a comparison of the customization options offered by Betterment and Schwab Intelligent Portfolios:

Betterment's customization options give you more flexibility and control over your investments, making it a great choice for those who want to tailor their portfolios to their specific needs.

Customer service is a crucial aspect of any investment platform, and Schwab Intelligent Portfolios shines in this area. You can talk to a Schwab investment professional 24/7 via phone, which is a game-changer for those who need immediate assistance.

Access to online chat is also available 24/7 for both prospective and current clients, making it easy to get answers to your questions without having to wait. However, it's worth noting that the chat responses are pre-scripted and closely relate to your question.

If you prefer to meet in person, you can schedule an in-person consultation at any of Charles Schwab's local branch offices across the country. This is a great option for those who prefer a more personal touch.

Betterment's customer service is scaled back by comparison, but it still includes weekday phone and email options. If you're a Premium member, you can schedule meetings with certified financial planners, which is a valuable resource.

Here's a comparison of the customer service features offered by Betterment and Schwab Intelligent Portfolios:

Investors with at least $25,000 in their account can opt for Schwab Intelligent Portfolios Premium, which provides unlimited advice from a human advisor for a $300 setup fee and $30 per month thereafter. This is a great option for those who want personalized guidance.

Betterment has some stiff competition in the robo-advisory space. Betterment itself ranks 1st with $335M in total funding, followed closely by Wealthsimple with $901M.

Wealthsimple is a strong contender, offering online robo advisory and stock trading platform services. Wealthfront, another notable player, has a robo advisor and financial planning platform.

Here's a brief rundown of the top 5 competitors and their total funding:

Betterment has several legal entities associated with it, which are registered in different countries. One of the entities, Betterment Holdings, Inc., was incorporated on October 05, 2021.

Betterment Holdings, Inc. is a US-based entity, with a revenue not specified in the records. Another entity, S&D Investment Consulting Solutions s.r.o., is a Czech Republic-based company, incorporated on November 19, 2018.

S&D Investment Consulting Solutions s.r.o. is an active entity, but its revenue is not provided. Similarly, PRO INVEST EXPERT s.r.o. is a Czech Republic-based entity, incorporated on October 01, 2014.

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PRO INVEST EXPERT s.r.o. is also an active entity, but its revenue is not specified. In contrast, BETTERMENT FINANCIAL LLC is a US-based entity, incorporated on April 16, 2019.

BETTERMENT FINANCIAL LLC is an active entity, but its revenue is not provided. BETTERMENT HOLDINGS, INC. is another US-based entity, incorporated on December 31, 1999.

BETTERMENT HOLDINGS, INC. is an active entity, with 524 employees as of December 31, 2024.

Betterment has some notable competitors and alternates in the robo-advisory space. The top two competitors are Wealthsimple and Stash, both of which have received significant funding, with Wealthsimple securing $901M and Stash securing $747M.

Wealthsimple has a strong presence in Canada, where it was founded in 2014, while Stash has a strong presence in the US, where it was founded in 2015. Both companies offer online robo-advisory and stock trading platforms, making them strong contenders in the market.

Here's a list of the top 10 competitors and alternates, ranked by their Tracxn Score:

These companies have varying levels of funding and Tracxn Scores, but they all offer unique features and services that set them apart from each other.

Betterment has been expanding its RIA offerings to attract advisors seeking younger, but increasingly affluent clients. This move aims to meet the evolving needs of modern advisors.

Betterment's custodial platform, Betterment Advisor Solutions (BAS), is making significant strides in reshaping the financial advisory industry. BAS is a key component of Betterment's efforts to modernize the industry.

Through digital technology, product offerings, and strategic acquisitions, Betterment is enabling advisors to better serve their clients. By leveraging these advancements, advisors can provide more effective solutions to their clients.

Betterment has acquired the automated investing business of Ellevest, a company built by and for women. This acquisition accelerates Betterment's development of advanced tools for RIAs via Betterment Advisor Solutions.

Betterment's Retail Investor Survey examined how investors navigate a financial landscape marked by inflation concerns, political uncertainty, and market volatility. The survey polled 1,200 investors across four generations.

Here are some key findings from Betterment's Retail Investor Survey:

Betterment has made some notable investments and acquisitions in recent years. One notable acquisition was Rowboat Advisors in May 2025.

Betterment acquired Gradvisor in February 2022, adding to its portfolio of companies. This acquisition was made possible after acquiring Makara in February 2022.

Here are some of the key details about Betterment's acquisitions:

Betterment has a significant amount of funding from various investors. The company has raised a total of $335M in funding over 10 rounds.

Betterment's first funding round was in November 2010, and its latest funding round was a Conventional Debt round on September 29, 2021, for $100M. This round was participated by 2 investors, including Odenn Ventures and SeedFord Partners.

The company has 42 institutional investors, including Kinnevik, Bessemer Venture Partners, and Francisco Partners. Fabrice Grinda and 1 other are Angel Investors in Betterment.

Betterment's funding rounds have included Series F and Series E rounds, with funding amounts of $60M and $70M, respectively. These rounds were completed in September 2021 and July 2017, respectively.

Here's a breakdown of Betterment's funding rounds:

Betterment has made significant strides in expanding its offerings through strategic acquisitions.

One notable acquisition was Rowboat Advisors, which took place on May 15, 2025.

Gradvisor was acquired by Betterment on February 23, 2022.

Makara was also acquired by Betterment on February 8, 2022.

Here's a brief overview of the companies acquired by Betterment:

Betterment offers a range of features that make it an attractive choice for investors. One of the standout features is its multi-goal planning options, which are available to all investors, regardless of account type.

You can link and synchronize external accounts to your Betterment dashboard for a complete financial picture. This feature provides a holistic view of your finances, making it easier to manage your money.

Betterment's customer service is available five days a week, offering live support to answer any questions you may have. This level of support is a significant advantage over some other investment platforms.

Here are some key benefits of using Betterment:

These features make Betterment an ideal choice for beginner investors, who may be new to the world of investing.